The latest report by Centre for Policy Studies’ pensions expert Michael Johnson proposes “auto-protection” at private pension age to better protect pensioners.
The report, which was covered by the FT Adviser, follows on from a 2010 CPS reports which argued for liberalisation of pensions which were picked up by the government and came into effect in 2015.
The article outlines the report:
“The think tank has suggested auto-protection would substantially reduce exposure to financial risks later in life, including premature exhaustion of savings, and would help protect the state from having to intervene in such a situation.
Auto-protection would have two components – “auto-drawdown” at private pension age and “auto-annuitisation” of residual pots at age 80.
Auto-drawdown would mean the saver would switch at pension age to income drawdown default of between 4 per cent and 6 per cent of savings a year.”
Click here to read the full article.
Date Added: Tuesday 21st March 2017